Sebi asks Asurre Agrowtech, its directors to refund investors

Markets regulator Sebi has asked Asurre Agrowtech and its directors to refund investors money, which was raised through illegal investment schemes, in three months.
Sebi also barred the firm and its directors -- Sengan Thangappalam, Shanmugam Rajendran, P Saravanan, V Venkataramanujam and R Devadoss -- from the capital market for four years.
As per the Sebi order, the company launched and operated collective investment schemes (CIS) without obtaining registration from the regulator.
A probe by Securities and Exchange Board of India (Sebi) found that the firm mobilised funds from customers through various investment plans under schemes of purchase of livestock/poultry.

As per the details, the company mobilised a total of Rs 69.30 crore under its schemes. The company claimed that it has refunded Rs 11.74 crore as on December 31, 2015 and has to refund Rs 57.55 crore.
However, it did not provide any verifiable proof regarding its claim.

In the order passed by Sebi Whole Time Member Prashant Saran, the regulator restrained the firms and their directors from collecting any money from investors or launching any CIS.
The entities will have to provide a detailed inventory of all their assets and details of all their bank and demat accounts, among others.

In addition, they have been barred from selling any assets of the company except for the purpose of making refunds to their investors.
In case they fail to comply with the order, Sebi said the entities will continue to be barred from the securities market even after the completion of four years of restrictions imposed on them "till all the CIS are wound up and all the money mobilised through such schemes are refunded to its investors with returns which are due to them".